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Home Technology Qualcomm Considers Intel Acquisition, Says WSJ

Qualcomm Considers Intel Acquisition, Says WSJ

a qualcomm sign is pictured in front of one of its many buildings in san diego california november 5 2014 photo reuters

On Friday, The Wall Street Journal reported that Qualcomm has reached out to Intel regarding a potential acquisition, leading to speculation about the future dynamics between Arm and x86 processors. Sources cited by the newspaper suggest that, while any agreement is still uncertain, it could represent a significant shift for Intel, which was once recognized as the world’s leading chipmaker, relying on its x86 technology that has traditionally outperformed Qualcomm’s Arm chips outside the mobile realm.

The New York Times later confirmed this information, noting that "Qualcomm has not yet made an official offer for Intel." If this acquisition moves forward and clears the necessary regulatory hurdles, it would be a monumental win for Qualcomm, which has recently re-entered the desktop processor field as part of Microsoft’s AI-focused PC initiative after holding a strong position in the mobile processor market for several years.

Intel, on the other hand, is in a precarious state. Although the company remains profitable in certain areas, it reported a loss of $1.6 billion earlier this year and has responded by implementing cost-cutting measures, revising its strategies, and reducing its workforce by more than 15%. In August, CEO Pat Gelsinger announced a halt to all non-essential operations and the spinning off of its chip manufacturing business—a sector that was once seen as a competitive edge against rivals like AMD, which depends on companies such as Taiwan’s TSMC for chip production.

Moreover, Intel has started outsourcing the production of its most advanced chips to TSMC, which has played a role in its ongoing financial difficulties. The company’s own 18A manufacturing technology has reportedly faced challenges, adding to its troubles. At the same time, AMD has successfully revitalized its standing, benefiting from strong backing from gamers and its stronghold in major gaming consoles, including the PlayStation and Xbox, leaving Intel behind on opportunities such as the upcoming PlayStation 6.

Additionally, Intel has stumbled with the PC gaming community after vulnerabilities in two of its key chip generations led to crashes. Although the company has extended warranties and released updates to address these issues, it remains a setback.

The challenges facing Intel extend beyond production and profit margins; the company has yet to carve out a noteworthy presence in the AI server chip market, which Nvidia currently dominates. Attempts to produce GPUs tailored for gamers and content creators have not made a significant impact either.

As Qualcomm, AMD, and Apple expand their foothold in the laptop sector, Intel has restructured its strategy for flagship laptop processors twice to compete against the perceived advantages in battery life and integrated graphics offered by its rivals. The performance of Intel’s forthcoming Lunar Lake processors, set to launch in October, will be pivotal in shaping the company’s future.

  • Rebecca Fraser

    Rebecca covers all aspects of Mac and PC technology, including PC gaming and peripherals, at Digital Phablet. Over the previous ten years, she built multiple desktop PCs for gaming and content production, despite her educational background in prosthetics and model-making. Playing video and tabletop games, occasionally broadcasting to everyone's dismay, she enjoys dabbling in digital art and 3D printing.

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